Gold regained ground on Wednesday as speculators resurfaced on news that Iran had test- fired nine long- and medium-range missiles, lifting the metal's safe-haven appeal in times of uncertainty.
State media said Iran had test fired missiles, including one which it had previously said could travel as far as Israel and US bases in the region, at a time of increased tension between Iran and Israel over Tehran's disputed nuclear programme. Gold hit a low of $915.60 an ounce before bouncing to $921.15/922.15 an ounce on the Iranian news, steady from 921.35/922.55 an ounce late in New York.
Gold fell as low as $912.50 an ounce on Tuesday, its lowest level since June 27, on weaker oil and a rebounding US dollar. Gold was well below a record high of $1,030.80 hit in March.
Spot platinum firmed to $1,945.00/1,965.00 an ounce from $1,940.50/1,960.00 late in New York. It hit a two-month low of $1,936.50 on Tuesday on fears a slowing US economy could weaken demand from car makers. Platinum was well below a record high of $2,290 hit in March on supply fears in main producer South Africa. Arbitrage buying from speculators in Tokyo futures pushed up cash prices but platinum struggled to sustain gains.
"After platinum fell below the $1,950 region, I think it could move lower, from a technical perspective. Gold and silver are definitely much better off," said a dealer in Singapore, who pegged support at $1,920 for platinum. The most active platinum contract for June 2009 delivery.